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Wednesday, 03 October 18
SHIPPING MARKET INSIGHT - KATERINA RESTIS
 The bunker fuel supply and availability landscape is close to its transformation with the enforcement of the IMO’s global 0.5% fuel Sulphur content cap regulation from 1st of January, 2020. Shipowners will have to choose between available options for them to comply with the regulation, while refiners will have to make suitable changes to refinery configuration and production in response to market demand. Thus far all parties will have to decide on the most efficient and appropriate solution that will suit their operations and allow them to remain commercially sustainable in the long run.
The swipe from the present 3.5% to 0.5% Sulphur content marine fuel will practically be an overnight shift as refineries would need to continue production and supply of up to 3.5% marine fuel until the day regulation requirement kicks in. Global refining will face enormous logistics, storage and delivery issues, while ships will have to clean out fuel systems to avoid Sulphur contamination. Thus, there is a risk such quick swing to lead to a period of product shortages and inflated marine oil prices. According to data reported on average up to 2017, the shipping industry was consuming approximately 3.2m barrels p/d of HFO and 800k p/d of MGO. Accordingly, from 2020 onwards it is estimated that proportion will alter to 700k p/d of HFO to 3.4m barrels p/d of MGO. Obviously, the use of compliant Sulphur oil products will be the expensive solution for ship-owners that will either absorb the cost or possibly operators will try to pass the cost to Charterers via increased freight rates.
Simple refineries that produce a substantial share of their crude oil into HFO may face margin pressures, while complex refineries with greater infrastructures may potentially boost margins with larger production of low Sulphur products. IEA has stated that if refiners ran at similar utilization rates as of today, it would be unlikely to produce the essential volumes of gas oil. Particularly, if quantity rises to meet the required gas oil volumes, margins would be inevitably affected by shrinking profits.
Overall, oil majors and refineries will try to back up the bunker fuel demand ascending from the new regulation through several ways. Refiners may elevate ULSFO production by extracting low Sulphur fuel streams that are currently blended into LSFO or HSFO will be made available to the market as ULS FO. ExxonMobil, for example has introduced a product, Heavy Distillate Marine ECA 50 that can be consumed onboard like HFO and has only 0.1% Sulphur content. Furthermore, refiners have an issue of handling their surplus residue as this option comes with higher risk on returns of investment. This is due to the fact that oil demand is founded on shippers’ uptake of alternative options such as scrubber installation and LNG bunkering. Refiners can raise LNG bunker supplies in major bunkering hubs. In Singapore, Shell and ExxonMobil are working with Maritime and Port Authority of Singapore to supply LNG as fuel.
To sum up, in the scenario that refineries restrict the availability of HFO on expected higher margins from selling MGO, then vessels fitted with scrubbers might face challenges in relation to adequate supply of HFO. On the other hand, refineries worry that any surge in the use of MGO would head to excess quantity of HFO. For sure refineries are not rushing to big investments to change production set ups while ship-owners are still considering their options. It’s a dilemma for all parties and a puzzle to be solved.
By Katerina Restis
Tanker Chartering
Compiled by:
Intermodal Research & Valuations
Analysts:
Ms Eva Tzima
George Panagopoulos
Disclaimer and legal disclosure: For any further queries please do not hesitate to contact our Research & Valuations Department. The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production of the above review, no liability can be accepted for any loss or damage incurred in any way whatsoever by any person who may seek to rely on the information and views contained in this material. This report is being produced for the internal use of the intended recipients only and no reproducing is allowed, without the prior written authorization of Intermodal Shipbrokers Co.
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Friday, 28 September 18
INDONESIA 2018 COAL OUTPUT TARGET NOW AROUND 507 MLN T - ENERGY MINISTRY : REUTERS
Indonesia has increased its 2018 coal production target to around 507 million tonnes from a previous target of 485 million tonnes, the Energy Minis ...
Friday, 28 September 18
FITCH RATINGS: METALLURGICAL COAL MINERS MAY CURB COSTS AS PRICES SLIP
Strong cost inflation in the global metallurgical coal sector suggests that miners may focus on cost controls as prices decline from their current ...
Wednesday, 26 September 18
IS YOUR CHARTER PARTY READY FOR 2020? - METTE KRONHOLM FRAENDE, BIMCO
As the deadline for the IMO’s global low-sulphur fuel requirements fast approaches, it is necessary to carefully check the bunker clauses in ...
Wednesday, 26 September 18
SHIPPING MARKET INSIGHT - GEORGE ILIOPOULOS
Despite the fact that the dry bulk SnP market saw an admittedly busy summer season, there is a noticeable slowdown in activity during the past thre ...
Tuesday, 25 September 18
THE INCONVENIENT TRUTH OF RISING COAL PRICES - FORBES
Coal prices are not supposed to be rising as governments tighten environmental controls but that’s precisely what is happening at the premium ...
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Showing 1606 to 1610 news of total 6871 |
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- Marubeni Corporation - India
- Videocon Industries ltd - India
- Sindya Power Generating Company Private Ltd
- Edison Trading Spa - Italy
- Indonesian Coal Mining Association
- Pendopo Energi Batubara - Indonesia
- GVK Power & Infra Limited - India
- Formosa Plastics Group - Taiwan
- Commonwealth Bank - Australia
- Petron Corporation, Philippines
- Madhucon Powers Ltd - India
- Borneo Indobara - Indonesia
- ASAPP Information Group - India
- Parliament of New Zealand
- Meenaskhi Energy Private Limited - India
- Ministry of Finance - Indonesia
- Sakthi Sugars Limited - India
- Riau Bara Harum - Indonesia
- Uttam Galva Steels Limited - India
- Sinarmas Energy and Mining - Indonesia
- Georgia Ports Authority, United States
- Carbofer General Trading SA - India
- Bulk Trading Sa - Switzerland
- Indo Tambangraya Megah - Indonesia
- Sojitz Corporation - Japan
- Mercator Lines Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Manunggal Multi Energi - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Thiess Contractors Indonesia
- Makarim & Taira - Indonesia
- IHS Mccloskey Coal Group - USA
- Jindal Steel & Power Ltd - India
- Central Electricity Authority - India
- Indian Energy Exchange, India
- Price Waterhouse Coopers - Russia
- Kobexindo Tractors - Indoneisa
- Neyveli Lignite Corporation Ltd, - India
- Savvy Resources Ltd - HongKong
- Bharathi Cement Corporation - India
- Port Waratah Coal Services - Australia
- Global Green Power PLC Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- Coalindo Energy - Indonesia
- Global Business Power Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Offshore Bulk Terminal Pte Ltd, Singapore
- The Treasury - Australian Government
- South Luzon Thermal Energy Corporation
- PTC India Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Meralco Power Generation, Philippines
- Timah Investasi Mineral - Indoneisa
- Gujarat Sidhee Cement - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Anglo American - United Kingdom
- Xindia Steels Limited - India
- Energy Link Ltd, New Zealand
- AsiaOL BioFuels Corp., Philippines
- Banpu Public Company Limited - Thailand
- Globalindo Alam Lestari - Indonesia
- Altura Mining Limited, Indonesia
- Metalloyd Limited - United Kingdom
- Coal and Oil Company - UAE
- GN Power Mariveles Coal Plant, Philippines
- Eastern Energy - Thailand
- Dalmia Cement Bharat India
- Intertek Mineral Services - Indonesia
- Economic Council, Georgia
- Gujarat Electricity Regulatory Commission - India
- Goldman Sachs - Singapore
- SMC Global Power, Philippines
- Romanian Commodities Exchange
- Bangladesh Power Developement Board
- Bank of Tokyo Mitsubishi UFJ Ltd
- CIMB Investment Bank - Malaysia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- New Zealand Coal & Carbon
- IEA Clean Coal Centre - UK
- TeaM Sual Corporation - Philippines
- Bhushan Steel Limited - India
- Parry Sugars Refinery, India
- Standard Chartered Bank - UAE
- CNBM International Corporation - China
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bukit Asam (Persero) Tbk - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Trasteel International SA, Italy
- Central Java Power - Indonesia
- Indian Oil Corporation Limited
- Jaiprakash Power Ventures ltd
- Rashtriya Ispat Nigam Limited - India
- MS Steel International - UAE
- Vizag Seaport Private Limited - India
- Vedanta Resources Plc - India
- Latin American Coal - Colombia
- Ministry of Mines - Canada
- The State Trading Corporation of India Ltd
- Simpson Spence & Young - Indonesia
- Bukit Baiduri Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Thai Mozambique Logistica
- Kumho Petrochemical, South Korea
- Ministry of Transport, Egypt
- Cement Manufacturers Association - India
- PetroVietnam Power Coal Import and Supply Company
- Kartika Selabumi Mining - Indonesia
- Sree Jayajothi Cements Limited - India
- India Bulls Power Limited - India
- Eastern Coal Council - USA
- Electricity Authority, New Zealand
- The University of Queensland
- Kepco SPC Power Corporation, Philippines
- GMR Energy Limited - India
- PNOC Exploration Corporation - Philippines
- Australian Commodity Traders Exchange
- LBH Netherlands Bv - Netherlands
- Agrawal Coal Company - India
- Bhoruka Overseas - Indonesia
- OPG Power Generation Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Malabar Cements Ltd - India
- Mercuria Energy - Indonesia
- Bayan Resources Tbk. - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Aboitiz Power Corporation - Philippines
- Coastal Gujarat Power Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Petrochimia International Co. Ltd.- Taiwan
- Oldendorff Carriers - Singapore
- PowerSource Philippines DevCo
- Sarangani Energy Corporation, Philippines
- Africa Commodities Group - South Africa
- Directorate Of Revenue Intelligence - India
- Rio Tinto Coal - Australia
- Kideco Jaya Agung - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Global Coal Blending Company Limited - Australia
- Krishnapatnam Port Company Ltd. - India
- Wood Mackenzie - Singapore
- Maheswari Brothers Coal Limited - India
- Toyota Tsusho Corporation, Japan
- Vijayanagar Sugar Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- Star Paper Mills Limited - India
- Iligan Light & Power Inc, Philippines
- Miang Besar Coal Terminal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Mintek Dendrill Indonesia
- SMG Consultants - Indonesia
- VISA Power Limited - India
- Merrill Lynch Commodities Europe
- San Jose City I Power Corp, Philippines
- GAC Shipping (India) Pvt Ltd
- Billiton Holdings Pty Ltd - Australia
- McConnell Dowell - Australia
- Baramulti Group, Indonesia
- Power Finance Corporation Ltd., India
- ICICI Bank Limited - India
- Grasim Industreis Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Posco Energy - South Korea
- Karaikal Port Pvt Ltd - India
- Independent Power Producers Association of India
- Ind-Barath Power Infra Limited - India
- Singapore Mercantile Exchange
- Bhatia International Limited - India
- Planning Commission, India
- Samtan Co., Ltd - South Korea
- Antam Resourcindo - Indonesia
- Aditya Birla Group - India
- SN Aboitiz Power Inc, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Attock Cement Pakistan Limited
- Sical Logistics Limited - India
- White Energy Company Limited
- London Commodity Brokers - England
- Kapuas Tunggal Persada - Indonesia
- Kaltim Prima Coal - Indonesia
- Larsen & Toubro Limited - India
- Interocean Group of Companies - India
- Renaissance Capital - South Africa
- Chamber of Mines of South Africa
- Heidelberg Cement - Germany
- Deloitte Consulting - India
- Mjunction Services Limited - India
- Bukit Makmur.PT - Indonesia
- Ambuja Cements Ltd - India
- International Coal Ventures Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Siam City Cement - Thailand
- Siam City Cement PLC, Thailand
- Australian Coal Association
- Energy Development Corp, Philippines
- Medco Energi Mining Internasional
- Tata Chemicals Ltd - India
- Binh Thuan Hamico - Vietnam
- Lanco Infratech Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Semirara Mining Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Orica Australia Pty. Ltd.
- Ceylon Electricity Board - Sri Lanka
- Orica Mining Services - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Electricity Generating Authority of Thailand
- Indogreen Group - Indonesia
- Indika Energy - Indonesia
- Minerals Council of Australia
- Wilmar Investment Holdings
- Tamil Nadu electricity Board
- European Bulk Services B.V. - Netherlands
- Alfred C Toepfer International GmbH - Germany
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